By Dean Arif, MY Bullion Trade:
Continuing from our article “All you need to know about gold deals, scams, fraud and the reality of gold trade and mining”, we received many enquiries about entities wanting to buy or sell gold in large quantities, usually with a very steep discount.
Every time we receive such phone calls or WhatsApp messages, we wish we could smack the person at the other end of the line with our best-selling gold kilobar to wake them up from their greed-induced hallucination. Such deals does not exist. It is as real as chasing a pot of gold at the end of a rainbow.
Owner or Buyer of Gold Have Above-Average Intelligence
Would you agree with us that a person with a large sum of money to buy gold, or have gold to sell, would have an above average intelligence? How could they become rich if they are stupid, right? An intelligent person would rather buy or sell gold WITHOUT the need for a middle person, thus getting more value out of the transaction. An intelligent person would by now be aware of this awesome invention called “Google” and would be able to find at his or her fingertip companies that can buy or sell gold in large quantities. If you can find MY Bullion Trade by using Google, so can they. Why would they need to shoot an email or WhatsApp messages to some random strangers (like you) to source for a bulk gold buyer or seller? Think about it. Most of the time such emails or messages are out to scam the unsuspecting and naïve middle person.
Gold Trading Have Razor Thin Margin
A lot of people think that trading gold would net a sexy 20-30% profit margin, so they ask for a ridiculous 5 to 10 per cent discount or a cut of their share for being the middle person. This is grossly inaccurate! Gold is a commodity that have been traded for the past 5,000 years. The gold market is very mature and highly competitive all over the world with razor thin margin. A wholesale trader like us only make an average of USD50 for every kilogram of gold – or 0.1% to 0.25% gross margin. How on Earth then could we give 5 to 10 per cent discount? It is downright annoying and an insult to genuine gold traders!
If you come across a deal asking for more than 5% discount off the LME or spot price for refined and assayed gold bars, walk away, it is not real! Nowhere in the world can you find a readily refined and assayed gold bars at such discount. Refiners and wholesale traders can easily sell by the tonnes AT spot price, why would they want to sell to some unverified entity at a steep discount?
If you disagree and think you can genuinely find gold bars at more than 5% discount off the spot price, please call our hotline at +6012-220 7276 because we want to buy these cheap gold bars from a foolish seller by the truckloads!
Here are examples of scammy photos of gold bars we have received:
Here’s our favourite, a very confused 999.9 brass bars that is 100% pure bull$#:t!
Also, please read our article on Exposing Gold Fraud and Gold Scams.
Good post. I’m experiencing some of these issues